Best ISA platform for REITs?

blizeH
blizeH Posts: 1,362 Forumite
Name Dropper First Anniversary First Post
in Savings & investments
Hi,
I currently have an iWeb account which is over the FSCS limit and as a result I'm considering opening another ISA to run alongside it.

I'm particularly interested in REITs, but on some platforms (particularly ones which charge whenever you receive a dividend/income) it could work out to be quite costly.

I love iWeb's low cost approach (I'd likely only be depositing once or twice a year at the very most) so is there anything similar that I should consider?

Many thanks

Comments

  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    i wouldn't necessarily add another provider if you're only a little over the FSCS limit. though i would use several providers if you're a long way over it.

    there are a few more ISA providers with no charges except when you deal (or transfer out / close the account):

    - ajbell youinvest

    - X-O

    - SVS

    - saga share direct (only available to over 50s)

    - TD direct (no charge if the ISA is worth at least £5,100, or has a regular investment facility)
  • Linton
    Linton Posts: 17,156 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    For S&S investments I dont see the £50K FSCS limit as much of concern. The situation with investments is very different to that with bank accounts. When you deposit money with a bank you are giving the money to the bank in return for a promise too pay you back. If the bank goes bust you are just one of many creditors who may or may not get any money back. Investments are very different - they remain your property and the various intermediaries just have the right to act on your behalf. So if any of those intermediaries goes bust your investments are not at risk. They are simply passed to someone else to manage them.

    One has to think a bit to devise scenarios where the FSCS guarantee would be relevent. All would seem to involve fraud or reckless negligence, which is pretty unlikely in a mainstream regulated intermediary.

    The disadvantage of splitting over multiple providers is that it makes balancing and record keeping increasingly complicated - eg if you want to sell part of investment held with provider A to buy more of one currently held with provider B. After a while you may find that both accounts hold much the same funds but in different proportions.

    So I and many other people are perfectly happy to have 6-figure sums held with one provider.
  • blizeH
    blizeH Posts: 1,362 Forumite
    Name Dropper First Anniversary First Post
    Oh, thank you very much for the information guys - I wasn't aware of that! Great news. I'm very happy with iWeb (although they don't offer some of the funds I would have liked to have invested in - so will look at the list kindly provided by grey also) so will continue to use them as my main platform
  • Chickereeeee
    Chickereeeee Posts: 1,186 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    blizeH wrote: »
    Oh, thank you very much for the information guys - I wasn't aware of that! Great news. I'm very happy with iWeb (although they don't offer some of the funds I would have liked to have invested in - so will look at the list kindly provided by grey also) so will continue to use them as my main platform

    Ask iWeb why they do not offer the funds you want (the answer can be revealling) and if they can add them. They do sometimes!

    C
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    my list of providers was more relevant for REITs than funds. some of them don't offer funds at all (X-O and SVS), and the others all have holding charges for funds.

    it's difficult to match iweb's charging structure for funds - i.e. only fixed dealing fees, no % holding charges. (unless you have less invested in funds, when you're better off with the opposite charging structure - i.e. no dealing fees, only % holding charges - e.g. from cavendish online.) selftrade are almost there - a fixed fee for selling funds, no fee for buying, and no holding fees - except that you have to buy or sell at least once per quarter to avoid an inactivity fee.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    BTW ... when i asked iweb about some funds which they had on their system but marked as not available in an ISA, they changed it so they were available in an ISA. so it may well be worth asking.
  • blizeH
    blizeH Posts: 1,362 Forumite
    Name Dropper First Anniversary First Post
    Sorry for the late reply, but that's great news, thank you all. Going to put in my ISA transfer request now and will contact iWeb if they don't offer the REITs I'm after :)
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